That explains having a unit (whatever name the unit has) with two decimal places. However, I still can't see the connection with specifically “bits” with specifically “0.000001”.
Ah ok, I think I can help you find that connection. Let's use all digits to describe an amount in "Bitcoin":
0.12345678
How many "bits" is this? Given that there are a *total* of this many currency units:
12,345,678
These are the actual (and current) non-divisible, *functional* amount of units -- described today as "satoshi". Therefore:
0.12345678 Bitcoin = 12,345,678 satoshi
Where do we get "bits"? Let's only allow a maximum of 2 digits past the decimal point. To do this, divide the smallest units by 100, and we will call this new decimal placement the "bit" unit. "bits" as the plural version:
12,345,678 satoshi / 100 = 123,456.78 bits
So you might ask yourself, "wait... how many bits is in a bitcoin then?
"
1.23456789 BTC = 1 million and 234,567.89 bits.
So basically, everything past the decimal point of the BTC unit is the "number of thousands" of bits. For example:
0.435 BTC = 435,000 bits.
I've only actually run through a process like this with maybe a couple dozen people: everyone gets it; however, 1 person sticks in my mind as very insecure about their math ability and skeptical to whether or not they'll figure it out on their own. Others could have felt this way, too. Anyhoo, I hope this explanation helps, and I hope it inspires others as a way to teach people about "Bitcoin" and "bits". I say we just use bits ... your common person rarely transactions 1 BTC worth in a single transaction (today about 340 USD) ... unless they're in the USA buying a new television that they saved up for
(edit: added unit amount missing)
Your average person should refer to it as "1 bit"; here's reasoning:
"100 satoshi" -- 6 syllables, sounds foreign to the english speaker.
"1 bit" -- 2 syllables, sounds like a small amount (which "a bit" is considered a small amount in the english language).
"1 microbitcoin" -- 5 syllables (only useful for starting or ending a haiku), and your average person (sadly) has no idea what unit size a "micro" is.
Here's the reasoning they
shouldn't use 'bit' ------> https://en.wikipedia.org/wiki/Bit
A bit is the basic unit of information in computing and digital communications.and 'bit' is an
International Electrotechnical Commission's standard unit ------->
https://en.wikipedia.org/wiki/IEC_60027this is hardly a reason not to use a unit called "bit" because it's all about
context. (If you understand more than one language, you'll realize how important context is.) For example, if I ask you to pay me 2500 bits for a can of Coca Cola, you *know* I'm not asking you to send me 312.5 bytes of information. It's pretty obvious because of the context.
Besides, using the "bit" unit is all about interfacing with your *common* person. The reality is, your common person has no idea that 8 bits is 1 byte. Your common person has no idea what a byte is.... and people who *do* know what a bit (in the byte context) is, they're smart enough to figure out that "bit" can have a financial context.
To sum it up: what unit should we use to *help* the common person? After all, it is the entirety of the common people that will determine bitcoin's fate. I'll let my intellect take an ego stab *any* day if it means Bitcoin will be used by more people... so obviously, I vote "bits"